Transportation and insurance (ôn tập vận tải bảo hiểm)

[Semester 2B] Transportation and Insurance
CHAPTER 01: GENERAL INTRODUCTION ABOUT TRANSPORTATION.................................3
1/ What is transportation? Main specifications of transportation?.........................................3
2/ Give the reasons why transportation plays a vital role in the foreign trade of one
nation?........................................................................................................................................................... 3
3/ How can we classify transportation?............................................................................................ 3
4/ What are some benefits to the importer & exporter in attaining the rights of hiring
the main means of transports?............................................................................................................. 4
5/ Name all modes of transportation & give some key characteristics of each mode of
transportation (advantages & disadvantages)................................................................................4
6/ What is the allocation of transport responsibility in the foreign trade?..........................5

CHAPTER 02: CARRIAGE OF GOODS BY SEA.................................................................................5
1/ What are advantages & disadvantages of sea transportation?............................................5
2/ Compare the main characteristics between 2 important modes of vessel chartering
operations: Liner service & tramp shipping.................................................................................... 6
3/ Explain the process of Liner service operation & Tramp shipping
4/ What is Bill of Lading? Give all main contents in the Bill of Lading....................................8
5/ Distinguish the differences between House B/L & Master B/L?..........................................9
6/ What is “To order” B/L & “Surrendered” B/L?...................................................................10
7/ What is Endorsement in Bill of Lading? In what cases we have a B/L endorsed & how
can we do it to make this endorsed B/L become effective?......................................................11
8/ What is the difference between Depot & ICD & Sea port?....................................................11
9/ What is the classification of B/L?................................................................................................. 12

CHAPTER 03: CARRIAGE OF GOODS BY AIR & BY RAIL..........................................................13
1/ What are advantages & disadvantages of air transportation?...................................13
2/ Explain the operation process in the carriage of goods by air...........................................13
3/ What is Air way B/L? Indicate & explain the main difference of functions between
Ocean Bill of Lading & Air way Bill of Lading, Railway bill.......................................................14
4/ Advantages & disadvantages of rail transportation..............................................................15

5/ Main content of the contract of the carriage of goods by rail.............................................15

CHAPTER 04: CARRIAGE OF GOODS IN CONTAINER & INTERNATIONAL (đề cương có
đủ)..........................................................................................................................................................16

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1/ Indicate some main shipping methods of ocean freight transport in container.........16
2/ Explain the procedure & responsibilities of each party for LCL / LCL shipping
method (đã soạn thêm FCL/FCL)....................................................................................................... 16

CHAPTER 05: FREIGHT FORWARDING OPERATIONS.............................................................18
(PROCEDURE & DOCUMENTATIONS)..........................................................................................19
1/ What is freight forwarding? Some requirements needed in freight forwarding?.......19
2/ What is freight forwarding operations & some legal basis for freight forwarding?...19
3/ Describe the import-export forwarding operation process at the terminal.................19
4/ Name some main documentations needed in Freight forwarding operations.............19

CHAPTER 06: GENERAL INTRODUCTION ABOUT INSURANCE.............................................19
Phần này trong đề cương đã có đủ đáp án, ít ra thi......................................................19
1/ Give the concept & effect of Insurance? 2/ Explain the operation principles of
Insurance? 3/ What is risk? Some main reasons caused risk? 4/ Loss in maritime
Insurance: Concept & how to classify loss in insurance?...........................................................19
5/ Distinguish between General Average & Particular Average.............................................19

CHAPTER 07: INSURANCE CONDITIONS & COMPENSATION................................................20
Phần này trong đề cương đã có đủ đáp án, ít ra thi, có thể ra bài tập......................20
1/ What are Insurance conditions?...................................................................................................20
2/ Give some risks which are insured in Insurance condition A,B & C from ICC 1982 of

ILU................................................................................................................................................................ 20
3/ Institute War Clause & Strikes Clause from ICC 1982 of ILU...............................................20
4/ Give some main principles which Insurance company used for loss compensation. 20
5/ Compensation for Loss from General Average & Particular Average..............................20

[Tài liệu tham khảo] Các chứng từ thực tế.....................................................................21

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CHAPTER 01: GENERAL INTRODUCTION ABOUT

TRANSPORTATION

1/ What is transportation? Main specifications of transportation?
1.1 - Concept:
➢ Transportation refers to the vital economic activities that facilitate physical movement of
goods as well as people from one place to another.
1.2 - Specifications:
➢ Transportation is a special production industry.
➢ Transportation product is the movement of goods & people. It is invisible.
➢ The production in transportation is the process of spatial & temporal impact on labor subject.
➢ New product is not created in the transportation production. Transportation is only the
movement of products from one place to another whereby it helps increase products’ value.

2/ Give the reasons why transportation plays a vital role in the
foreign trade of one nation?
Transportation plays a vital role in the economics, it reflects the development level of a
country. Transportation serves all life & social fields such as: production, distribution,
consumption, national Defence, etc.

Meets the increasingly demands for transportation in the society.
Transportation is an essential activity in the Logistics & Supply Chain function,
by moving goods from locations where they are sourced to locations where they
are demanded:
❖ Transportation provides the essential service of linking a company to its suppliers
and customers.
❖ Transportation system links geographically separated partners and facilities in a company’s
supply.
❖ Efficient transportation promotes the competitiveness of a Supply Chain.

3/ How can we classify transportation?

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4/ What are some benefits to the importer & exporter in attaining the
rights of hiring the main means of transports?
❑ To the exporter:
✓ Completely active in delivery process, time & place of delivery.
✓ Saving & increasing foreign currency in national budget.
✓ Contribution to develop national shipping industry.
❑ To the importer:
✓ Hiring means of transport with low rate ->Lower the price of goods -> Increase
competitiveness.
✓ Active in time & place of receipt for goods
Selection modes of transport basing on many different factors:
✓ Commodity: The products of the company and their type or characteristics (e.g. perishables
or non-perishables, breakables etc), volume,
✓ Transport route, lead times
✓ Trade terms: Incoterms 2010 and 2020

✓ Packaging, packing specification, product availability
✓ Customers’ requirements
✓ Customs and Excise rules (duty, quarantine regulations and others)

5/ Name all modes of transportation & give some key characteristics
of each mode of transportation (advantages & disadvantages)

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6/ What is the allocation of transport responsibility in the foreign
trade?
❑ Highly impact of transportation on the foreign trade:

➢ Change the total output of import-export in foreign trade.
➢ Change the commodity & market structures in international trade.
➢ Directly affects to the Balance of Payment (cán cân thanh toán quóc té) of a country
1.5.2 – The allocation of transport responsibility in the foreign trade:
rd
➢ Seller or buyer must hire 3 party for transportation, as a carrier.
➢ The obligations for hiring transportation & paying transportation cost/freight are
all stipulated in the Sales contract.
➢ The Sales contract is signed by both parties, basing on the International Commercial Terms
(Incoterms).

CHAPTER 02: CARRIAGE OF GOODS BY SEA
1/ What are advantages & disadvantages of sea transportation?
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2/ Compare the main characteristics between 2 important modes of
vessel chartering operations: Liner service & tramp shipping.
Liner service









Follow fixed routes, complex
chartering procedure
Follow a set timetable
Changes are fairly constant
Owned and controlled by
conferences
Cargo: general cargo (highvolume, high- value), high
variety, heterogeneous, partly
loaded, containerized
shipment, furniture, garment,
sport shoes, seafood etc
Shipper: more than one
Higher price, freight is
fluctuant, un-stable, unpredictable

Tramp shipping











Change notes according
to demand
No set timetable (routing and
schedule arranged from the
charterer), flexibility, fast
shipping
Changes vary with demand
Owned by private
individuals partnership/
ltd.co.
Cargo: bulk cargo (low value),
low variety, homogeneous,
shiploads, liquid cargoes, dry
bulk, break-bulk, cement
(pour directly), grain, powder,
petroleum, oil etc
Shipper: generally one.
Cheaper price, freight rate and
shipping conditions can be
mutually negotiable (shipowner and charter)

[Last semester] Should choose tramp or liner? Why?

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3/ Explain the process of Liner service operation & Tramp shipping

* Advantages and Disadvantages of liner service:

* Tramp shipping
- As opposed to Liner service, tramp shipping (tramp trade) operates without
following any definite schedules, irregular shipping, mainly on non-standard routes
with non- advertised itinerary ports of call.
- Tramp ships are used to transport a variety of cargoes with low value & do not require
fast delivery (e.g. bulk cargoes, break-bulk cargoes, specialized dry cargo, liquid cargo,
mixed cargo, etc.)
- Cargo-owners (or charterers) can charter a vessel wholly or partly from the shipowner.
Main features:





Routing & schedule of tramp trade will be arranged as the requests from
the charterer.
Freight rate & shipping conditions can be mutually negotiable from both sides.
Large volume of cargo per one single voyage.
Rights, duties and responsibilities of ship-owners and charterers are determined by
the charter-parties.

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4/ What is Bill of Lading? Give all main contents in the Bill of Lading.

Quy trình sử dụng B/L, nguồn: ĐH Luật
1. As a receipt for goods shipped:

• Shipping marks / quality marks for identification of the goods
• Number of packages, pieces,
• Quantity / weight
• Apparent order and condition of the goods.
2. As an evidence of the contract of carriage: A Bill of lading is not the contract.
3. As a document of title to the goods:

• The holder of the B/L is entitled to delivery the goods at the POD.
• The holder can transfer the ownership of the goods during transit merely by
endorsing B/L.
• The B/L can be used as security for a debt.

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a.
Surrendered B/L is a kind of B/L that the buyer can receive their shipment
from the carrier without submitting the Original B/L, but must be accompanied by
Telex Release from the carrier at the departure end.
This kind of B/L is applied in 2 below cases:
 When Original B/L is not required by the carrier at discharge port
 When Original B/L comes later than the arrival of the vessel at destination.

b.
Straight B/L: (vận đơn đích danh):
The B/L clearly indicates who is the consignee. Only the consignee can receive
the shipment.
c. “To order” B/L
 To order of shipper: in case the seller wants to control the payment of the
buyer. After the buyer settles all freight and cost and invoice of the shipment,
the seller will endorse the B/L to transfer the title of the goods to the buyer
[endorse: to sign on the back of B/L with stamp signature]
 To order of consignee: khi lô hàng được bán qua nhiều người mua in 3
cases: Case 1: A & B have good relationship
Case 2: B is a large corporation/ MNCs
Case 3: A->B->C after C settled all payment of the shipment to B, then B will
endorse the B/L to transfer the title of goods on B/L to C. C can receive the goods
at port of discharge.
 To order of the bank B/L is a kind of B/L in which the shipment is released
under the order of the opening bank (issuing bank).
This kind of B/L is applied when the seller and the bank want to control the
payment of the buyer to ensure the interests of the seller.
Only when the buyer settles payment for the shipment, the issuing bank will
endorse the B/L for the buyer, with the stamp and signature of the issuing bank
on the back of the B/L. After that, the buyer must confirm his title to the goods
by his stamp and signature on the back of the B/L to make this kind of B/L valid
and the consignee can receive the goods.
Transferred by Endorsement (ký hậu vận đơn): chuyển quyền sở hữu order -> straight

5/ Distinguish the differences between House B/L & Master B/L?

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NVOCC: non- vessel operating common carrier

6/ What is “To order” B/L & “Surrendered” B/L?

Negotiable B/L
- Chuyển benefits qua lại được, được
lưu thông trên thị trường và cầm cố,
chuyển được, thường xuyên làm việc
với bank và

Non-negotiable B/L
Ngược lại với negotiable B/L, giúp
người nhận hàng nhận nhanh hơn và có
khả năng cao bị nhái mộc (đối với
surrender B/L) và các rủi ro khác

insurance vì giá trị hàng hố có rủi ro
cao và thời gian vận chuyển dài.

Surrendered B/L & Telex Release:

- Người nhận hàng khi nhận hàng phải
xuất hàng bằng B/L gốc (rủi ro chuyển
vận đơn qua đường air là rất cao vì có
khả năng làm mất vận đơn, khơng gửi
qua kịp cho buyer thì khơng được lấy
hàng từ

Widely used in

international shipping.
Only applicable for straight B/L.
Used in case when Original B/L is
not requested at discharge port
(destination port) or B/L was
issued to shipper at loading port,
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hãng tàu, hãng sẽ giữ lại khi giải quyết
xong. Nhưng đối với mạng lưới
forwarder

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rộng lớn thì giảm tác động của rủi ro
này xuống.

however, it comes later than
(after) the arrival of the vessel at
destination port.
Agent of shipping line at
loading port must issue telex
release in system to confirm
cargo release under
Surrendered B/L.
Sea way B/L (Giấy gửi hàng
đường biển):
Biên lai gửi hàng: người vận

chuyển gửi đến cho người
gửi hàng
Hợp đồng vận tải thay được
B/L Khơng có tính lưu thông,
nhận hàng không cần bảng gốc
Thường gửi lô hàng quy mô nhỏ,
khách hàng thân thiết hoặc là
công ty con của công ty mẹ

7/ What is Endorsement in Bill of Lading? In what cases we have a B/L
endorsed & how can we do it to make this endorsed B/L become
effective?
Endorsement (Ký hậu): is an important procedure in international shipping, it is used
for transferring the title (ownership) of goods on B/L from one beneficiary to
another beneficiary.
The party who signed on Endorsement B/L, accepted to relinquish his ownership of
goods on B/L & transfer to new beneficiary.
In order for Endorsement to be effective, the Endorser must sign & stamp on the back of
B/L to transfer his ownership of goods to the beneficiary. In addition, the beneficiary
also has the obligation to sign & stamp on the back of B/L as well to confirm his
ownership of goods transferred by the endorser: Straight Endorsement, “To order of”
Endorsement, Blank Endorsement

8/ What is the difference between Depot & ICD & Sea port?
+ Depot: used for storing empty container, prepare services related to empty container
+ ICD (Inland Clearance Depot): ICD Tay Nam, ICD Phuoc Long, ICD Long Binh, ICD Phuc
Long, ICD Transimex etc
Having clearance function (doing customs procedures at ICD)
Serving both empty and full container

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All service goods including: stuffing, unstuffing, warehousing, packing and packaging,
loading/unloading from barge, focus on goods service
Connect depot by inland: usually place at traffic center of country or place at small
tributary
+ Sea port: serve both vessel and cargoes service (Cat Lai port)
Having all function of ICD and sparsely populated place
Loading/unloading goods from container

9/ What is the classification of B/L?
▪ A “Shipped on Board” B/L: - Indicates that goods are actually shipped on board / loaded
on board.
▪ A “Received for shipment” B/L: - When goods have been handed over to carrier / agent
of the carrier for shipment, but they have not yet been placed on board of the vessel.
▪ Through B/L: – If ocean transport forms only part of the complete journey and
overland transport has to be used as well, a “Through” B/L can be issued to cover all
stages of the journey.
▪ Direct B/L: - When there is direct service between 2 ports, without any transshipment.
▪ “Transshipment” B/L: This is issued if the goods have to be off-loaded and re-loaded on to a
second vessel because there is no vessel available to complete the full journey to the port of
destination. The transshipment port will be shown on the B/L.
▪ Stale B/L: - If the original bill of lading reaches the consignee after the arrival of the vessel at the
destination, it is known as a “stale Bill of Lading”.
▪ Clean B/L: – The B/L indicates that the carrier has received the goods in apparent good order
and condition, a clean B/L is one which bears no superimposed clause or a notation that expressly
indicates the defective condition of the goods or the packaging.
▪ Unclean B/L: This is a B/L which contains a superimposed clause expressly declaring that the
goods or packaging is defective. In this case, the ship owners can refuse to accept liability to

deliver the goods in good order and condition. This type of B/L is not acceptable to banks.
▪ Multi-modal Transport B/L: - When different modes of transport are used; usually issued when
goods stuffed at shipper’s premises and delivered at consignee’s premises.
▪ Charter Party B/L: - A charter party bill of lading is by a charter party who has hired a ship/vessel
or full or part of the space in the ship/vessel for his use. The charter party bills of lading are issued
subject to the terms and conditions as agreed by the hirer and the ship owners. The charter party
bills of lading are not acceptable to banks unless authorized under a letter of credit, because the ship
owner may refuse to deliver the goods if the charter party does not pay hire charges.
▪ Freight Prepaid B/L: - When freight is paid at the time of shipment or paid in advance, the B/L is
marked, “Freight prepaid”.
▪ Freight Collect B/L: - When the freight is to be collected from the consignee on the arrival of the
goods, the B/L is marked, “Freight collect”.

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CHAPTER 03: CARRIAGE OF GOODS BY AIR & BY RAIL
1/ What are advantages & disadvantages of air transportation?

2/ Explain the operation process in the carriage of goods by air.

14


3/ What is Air way B/L? Indicate & explain the main difference of
functions between Ocean Bill of Lading & Air way Bill of Lading,
Railway bill







An air waybill (AWB) is a document that accompanies goods shipped by an
international air carrier (aircraft operator) to provide detailed information
about the shipment and allow it to be tracked.
An air waybill is a receipt for goods for despatch by air, as well as a contract of
carriage by air signed between the shipper and the carrier. However, it is not
a document of title to the goods.
An air waybill is the most important document issued by an aircraft operator
either directly or through its authorized agent (freight forwarder), and covers the
transport of cargo from airport to airport
Ocean Bill of Lading (03
functions)

Airway Bill (02 functions)

Railway Bill (same
airway bill)

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










As a receipt for
goods shipped
As an evidence of the
contract of carriage
As a document of
title to the goods
Negotiable B/L can
be transferable
Can be use with all
incoterms defined in
incoterms rules
This documents is
used for sea
shipments, issued by
order










As a receipt for goods
shipped
Contract of carriage
of goods by air can
not be transferable
Not a document of
title to the goods
Non negotiable B/L



Not use with FAS,
FOB, CFR, CIF
incoterms
This documents is
used for air
shipments











Have a sign “on
board”, have

surrender

It is a receipt for
goods shipped by
rail.
Contract of
carriage of goods
by rail
Not a document
of title to the
goods
Rail waybill is
non-negotiable
B/L
Not use with
FAS, FOB, CFR,
CIF incoterms
This documents
is used for rail
shipments

4/ Advantages & disadvantages of rail transportation.

5/ Main content of the contract of the carriage of goods by rail.
• Contract date.
• Name & address of all related parties.
• Carriage scheduled target.
• Specified methods in organizing, loading & unloading,
forwarding methods, etc. • Contract value.
• The liabilities of all parties.

• All regulations in carriage of goods by rail.
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5.0/ Airway bill

Other Docs.
Export license issued by competence authority.
Customs declaration
Certificate of quantity
Certificate of quality
Cargo Manifest

CHAPTER 04: CARRIAGE OF GOODS IN CONTAINER &

INTERNATIONAL

1/ Indicate some main shipping methods of ocean freight transport in
container.
a.




FCL/ FCL
FCL stands for Full Container Load.
Refers to a single shipment that has exclusive use of a container.
FCL shipments are suitable for those who have large amounts of goods to send.

Applicable when cargo-owners/shippers have a large volume of cargoes enough to fully

stuff into 1 container.nt
- Place of delivery & receipt is at the container yard.
- Container is fully stuffed & sealed before delivery to the carrier.
- Shippers will be responsible for container stuffing fees.
b.
c.
d.

FCL/ LCL
LCL/FCL
LCL/LCL

2/ Explain the procedure & responsibilities of each party for LCL / LCL
shipping method (đã soạn thêm FCL/FCL)
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COMPARE BETWEEN FCL AND LCL
FCL
-Pay for the whole container
-Most cost-efficient when
volumes can fill most of the
container
-More flexible: no need for
consolidation means you
can fill the container at your
own
schedule

LCL

-Charge by volumetric/dimensional
weight or actual weight, whichever is
greater
-Most cost-efficient at lower weight
breaks
-Less flexible: need to stick to schedule
for consolidation with other shipments
=> more time is needed for loading

2.1. FCL

Shipper requests & book spaces from carrier (shipping line)
The carrier sends the booking note to the shipper
The shipper pick up empty container from depot or ICD or port
The shipper stuffs the goods onto the container.
The shipper deliver full container to the carrier
The carrier issues the B/L to the shipper
The shipper sends the B/L to consignee
The cogsinee submit the B/L to the carrier
The carrier releases full container to the consignee
2.2. LCL

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Many shippers deliver their goods to the forwarder
Forwarder send booking request to the main carrier
The carrier send the booking note to forwarder
Forwarder send booking note to each shipper
Forwarder stuff 1st, 2nd, 3rd ,… consignment into container at freight forwarder’s

warehouse or CFS
Forwarder deliver FCL to carrier
The carrier issues master B/L to forwarder
Forwarder issues house B/L to each shipper
Forwarder send original master B/L to agent at destination
Shipper send house B/L to consignee
Agent of the main carrier send arrival notice to agent of the forwarder
Agent of the carrier send DO to the agent of forwarder
Agent of forwarder submit master B/L to the carrier
Agent of the carrier delivers FCLto agent of forwarder
Consignee submit house B/L to the agent of forwarder
Agent of forwarder delivers consignment to the
consignee

CHAPTER 05: FREIGHT FORWARDING OPERATIONS

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(PROCEDURE & DOCUMENTATIONS)Phần này trong đề cương đã có đủ đáp án, ít ra thi.
1/ What is freight forwarding? Some requirements needed in freight
forwarding?
2/ What is freight forwarding operations & some legal basis for freight
forwarding?
3/ Describe the import-export forwarding operation process at the
terminal.
4/ Name some main documentations needed in Freight forwarding
operations.

CHAPTER 06: GENERAL INTRODUCTION ABOUT

INSURANCE

Phần này trong đề cương đã có đủ đáp án, ít ra thi.
1/ Give the concept & effect of Insurance?
2/ Explain the operation principles of Insurance?
3/ What is risk? Some main reasons caused risk?
4/ Loss in maritime Insurance: Concept & how to classify loss in insurance?
5/ Distinguish between General Average & Particular Average.

20